MaxedOutMama

Dwek's empire meltdown started in May, after he was accused of bouncing a $25.2 million check and withdrawing $21 million that did not belong to him. A Superior Court judge soon froze all of Dwek's assets. When Dwek's loans seemed to be on the verge of default, a trust that involved the sister of Amboy president George E. Scharpf purchased $18 million of the Amboy loans at full value, Amboy officials said. Scharpf could not be reached for comment.

Together, Dwek and Kara loans remaining with Amboy total nearly $108 million.

One $10 million Amboy loan to Dwek drew attention to itself because mortgages on two of three properties securing the loan were not filed in county clerks offices for seven months. The third property was sold months later before the mortgage could be filed.

Amboy lent Dwek the $10 million in October, according to land and court records. That loan was secured by mortgages placed against three properties: a commercial site in Neptune City, a property in Long Branch and a 4-acre defunct marina in Dover Township, Ocean County.

Amboy already had a mortgage for an earlier $850,000 loan on the Neptune City property. But two other banks were able to get two mortgages totaling $4.1 million placed ahead of Amboy on the Neptune City and Dover Township properties because of Amboy's delay in filing its own $10 million mortgages.
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That would make a total of nearly $15 million in mortgages on two properties that Dwek had purchased for $5.35 million....

Also on May 5, the bank sold the $10 million loan to a company, D and D I Inc., whose president is George E. Scharpf, 65, of Colts Neck, the president of Amboy bank. Court records filed by Amboy Bank say D and D paid $9,995,138 for the loan.

It was then sold again on May 31 to D and D Trust, which has Scharpf's sister, Marguerite DiSepio, as a trustee. DiSepio, 68, is also an officer in the Amboy Foundation, the bank's charitable arm, according to state filings.

In addition, Amboy gave Dwek a $12 million loan in February. The mortgage securing that loan on four Ocean Township residential lots wasn't filed with the county until May.
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The three mortgages securing the $10 million loan indicate that they were given for $1 and "other good and valuable consideration." Other land records reflect it was a $10 million loan.

In court papers, fiscal agent Donald M. Lomurro, who has been given the job of recommending how to pay off Dwek's creditors, said a judge would have to decide whether the mortgages secure $1 or the full amount.

"Although the house was assessed in 2005 at $1.2 million, public records show the mortgages on Dwek's Crosby Avenue house total $2.4 million. That includes $850,000 in two mortgages issued by Community Bank of New Jersey in 2001 and 2004. The bank was bought by Sun National Bank."

"Washington Mutual Bank issued a third mortgage on the house for $1.5 million this January to Pearl Dwek, Solomon Dwek's wife."